Australia lifts key rate from 49 yr low Posted by Gwen Robinson on Oct 06:
Australia on Tuesday became the first G20 nation to raise borrowing costs since the start of the global financial crisis more than a year ago, as the central bank unexpectedly raised its benchmark interest rate from a 49-year low and signalled more increases in coming months, reports Bloomberg. Reserve Bank governor Glenn Stevens increased the overnight cash rate target to 3.25% from 3%, driving the Australian dollar to $0.8834 from $0.8762 .
FT.com

Australia Raises Rate From 49-Year Low, Signals More (Update1) By Jacob Greber:
Oct. 6 (Bloomberg) -- Australia’s central bank unexpectedly raised its benchmark interest rate from a 49-year low and signaled further increases in coming months amid signs the economy is strengthening.
Reserve Bank Governor Glenn Stevens increased the overnight cash rate target to 3.25 percent from 3 percent in Sydney today. Only one of 20 economists surveyed by Bloomberg News forecast today’s move. The rest predicted no change. …
“It’s quite a pre-emptive move,” said Su-Lin Ong, senior economist at RBC Capital Markets Ltd. in Sydney. “They’re very comfortable the globe is returning to firmer growth, particularly Australia’s key trading partners in Asia. “There are a few more hikes ahead.” ...